The Sweetwater Candy Company would like to buy a new machine that would automatically "dip" chocolates. The dipping operation

currently is done largely by hand. The machine the company is considering costs $$180,000.$ The manufacturer estimates that the

machine would be usable for five years but would require the replacement of several key parts at the end of the third year. These parts

would cost $$11,000,$ including installation. After five years, the machine could be sold for $$7,000.$

The company estimates that the cost to operate the machine will be $$9,000$ per year. The present method of dipping chocolates costs

$$50,000$ per year. In addition to reducing costs, the new machine will increase production by $6,000$ boxes of chocolates per year. The

company realizes a contribution margin of $$1\mathrm{.}50$ per box. A $18\%$ rate of return is required on all investments.

Click here to view Exhibit $12$B$-1$ and Exhibit $12$B$-2,$ to determine the appropriate discount factor$($s$)$ using tables. $($Use the tables to get

your discount factors. The linked tables are the same tables as the ones in your course packet. If you calculate discount factors

using Excel or a financial calculator, your answer may be different enough due to rounding that the system will mark it wrong.$)$

Required:

What are the annual net cash inflows that will be provided by the new dipping machine? $($Hint: This is asking for the incremental

change in the $($undiscounted$)$ yearly cash flows if they buy the machine.$)$

Compute the new machine's net present value.